Clothing Stores NAICS 458110

Apr 20, 2026 - GLP-1 Boom Boosts Apparel Demand

• The rise of GLP-1 weight-loss drugs is creating a meaningful shift in the US clothing store industry, driving both increased demand and operational challenges, according to a Retail Dive report. Nearly 25% of U.S. households are using these drugs, and over half of users have already purchased new clothing, with most expecting continued wardrobe changes. This is fueling a multiphase purchasing cycle, not a one-time event, as consumers move across sizes. However, the trend is also disrupting traditional retail models, creating “fit volatility” that current inventory and planning systems, often set a year in advance, are not designed to handle. While demand is rising, especially for more fitted apparel, retailers face pressure to adapt sizing, assortment, and planning processes to keep pace with rapidly changing consumer needs.
• According to March's CNBC/NRF Retail Monitor report, the US clothing and accessories sector is outperforming broader retail, but growth reflects selective, value-driven spending rather than a broad shift toward discretionary purchases. In March, sales rose 0.57% month over month and 10.89% year over year, exceeding total retail gains of 0.4% month over month and 6.59% year over year. Performance was supported in part by tax refunds averaging $3,521 (up 11.1% year over year), which helped offset higher fuel costs. While apparel remains a top-performing category, consumer behavior appears targeted and price-sensitive, with spending likely tied to timing and promotions. As a result, retailers face continued pressure to maintain competitive pricing to sustain demand.

• A recent Wall Street Journal report highlights growing legal and operational risks for US retailers, including clothing retailers, tied to tariff policy. Costco faces a proposed nationwide class-action lawsuit seeking refunds for tariff-related price increases after tariffs were ruled unlawful. The Court of International Trade has ordered the government to refund approximately $166 billion in tariff revenue, though timing and distribution remain uncertain. At the same time, Costco is among hundreds of companies that have sued the US government to recover tariff payments as importers, adding another layer of litigation risk. According to the WSJ, retailers used a mix of price increases, supplier negotiations, and cost absorption, making consumer-level refunds difficult to calculate. With more than 2,000 related cases filed, the situation underscores how tariffs create pricing complexity, legal ambiguity, and potential financial liability across the US retail industry.
• US clothing retailers face mounting profit pressure as returns and shrink reached $796 billion in 2025, according to Appriss Retail data in Chain Store Age. Of $706 billion in total merchandise returns, 14.2% ($100 billion) was preventable loss from fraud and abuse, including 12% from returns abuse and 2% from fraud. Returns channels most relevant to apparel remain in-store driven: 52% ($367 billion) came from buy in-store, return in-store (BISRIS), while 29% ($208 billion) from buy online, return in-store (BORIS) represents the fastest-growing fraud and abuse vector, critical for omnichannel clothing brands. Additionally, $90 billion in shrink was reported, with 73% preventable, including $26 billion from employee theft, and $19 billion from inventory errors. However, returns also drive loyalty: 80% of shoppers say a good return experience boosts repeat purchase intent, and 73% made an extra purchase after a positive return. For apparel retailers, balancing loss prevention with seamless returns is now central to protecting margins and customer retention.